S&P 500 Weekly Forecast – S&P 500 Continues to Pull Back

S&P 500 Weekly Technical Analysis

You can see the S&P 500 did pull back a bit during the course of the week as it looks like we continue to see a lot of choppiness towards the top. At this point in time, though, we are entering earnings season, and it does make a certain amount of sense that there would be a bit of hesitation with that being the case.

It’s difficult to imagine a scenario where we don’t pull back a bit and at least take a breather. The earnings season, of course, will have its say, and beyond that, we also have a somewhat well-defined range over the last month, between the 5100 level on the bottom and the 5300 level on the top, while underneath we also have the psychologically 5000 level.

And at this point in time, this is a market that I think continues to see a lot of choppy noise. But over the longer term, I don’t see why anything changes. Quite frankly, Wall Street has found one reason or another to completely ignore what the Fed may or may not do and tell itself the correct story. They continue to see inflation as an issue, but ultimately the reality is that Americans don’t stop spending.

So while things probably end in tears eventually, they don’t seem to be doing so right now. So I fully anticipate that we recover a bit, whether or not we take off from here is a completely different question, but I don’t necessarily see a major meltdown coming either. I think we probably bounce around during earnings season.

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